Key facts
- Citigroup raised its 12-month bitcoin forecast to $113,000 from $82,000.
- Citigroup raised its 12-month ether forecast to $3,028 from $2,240.
- The brokerage forecasts $5 billion of crypto inflows over the next 12 months.
- Bitcoin has rallied nearly 40% in the past 3 months.
- Ether has rallied nearly 68% in the past 3 months.
Citigroup has increased its 12-month price targets for bitcoin and ether, citing stronger crypto activity, a supportive macroeconomic backdrop, and a resumption of ETF inflows. The brokerage raised its bitcoin forecast to $113,000 from $82,000 and its ether forecast to $3,028 from $2,240.
In a note dated Wednesday, Citigroup stated that it expects crypto inflows to resume at a slower but steadier pace as advisers and brokerages gradually increase allocations to bitcoin. The brokerage also forecast $5 billion of inflows over the next 12 months.
Last week, the US Senate failed to advance The Clarity Act, which aims to create a regulatory framework for digital assets, representing a setback for the broader industry. Citigroup noted that while the act's failure narrowed the path to a market-structure bill, it spurred Securities and Exchange Commission (SEC) rule announcements that dampened negative sentiment.
Bitcoin and ether have rallied nearly 40% and 68%, respectively, in the past three months, narrowing their year-to-date losses to about 4% and 9%. After months of lagging broader risk assets, bitcoin has risen 40% since its July lows, with a soft dollar and the US Treasury's recent move to buy back longer-dated bonds reviving momentum across crypto markets.